China Warns It Can't Find Jobs For College Graduates
While jobs in the US are hardly a success (employment not the movie), it appears that despite the faith that China is still growing at 7.5%, the slowing-growth nation is facing its own job creation nightmare. As China.org reports, this is being called the hardest job-hunting season ever for Chinese graduates - as nearly 7 million of them swarmed into the job market this summer. In a sad reflection of the US, it is becoming increasingly difficult for college graduates to secure a job in recent years (let alone a degree-required job) as the number of unemployed graduates has nearly doubled in the last 4 years (from 9% of graduates in 2008 to 17.5% now).
Although China's job market showed resilience in the first half of this year, the problem of creating enough jobs for graduates remains a hard nut to crack.
It is being called the hardest job-hunting season ever for graduates, as nearly 7 million of them swarmed into the job market this summer, adding to the country's job creation pressure amid the ongoing economic slowdown.
It has become increasingly difficult for college graduates to secure a job in recent years. Given the accumulated number of college students who graduated in previous years and failed to find a job, the pressure is growing.
According to the Blue Book of China's Society in 2012, compiled by the Chinese Academy of Social Sciences, about 9 percent of graduates in 2008 couldn't find a job on leaving college. In 2011, 17.5 percent failed to find employment,.
However, the authorities have a clear picture of the difficulties facing young job seekers. Premier Li Keqiang told college graduates that they should not just be content with looking for a job but should consider starting their own businesses when he met students in Lanzhou University on Sunday.
Those measures will surely ease the tension in the job market. But it will be almost impossible for the economy to fully absorb all the unemployed graduates in the short term, because the problem stems, in essence, from the explosive growth of the number of college graduates in recent years thanks to the country's college expansion program that started 10 years ago.
In 2001, China had 1.15 million college graduates. Now the number is more than six times that.
So, let's just run through this:
1) Credit enabled explosive (mis-allocated capital-based) growth
2) Explosive growth funded unsustainable jobs
3) Given the jobs growth (and easy credit) more students went to college
4) More graduates (thanks to government-sponsored education programs)
5) Growth 'stabilizes' (or slows)
6) Graduate unemployment surges
7) Government recognizes this problem (but it's not structural)
8) Government solution - more people should become self-employed
Seems the playbook of a quasi-Keynesian dream playing out once again...
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